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ALLEGHANY CORPORATION
7 Times Square Tower, 17th Floor
New York, NY 10036
ALLEGHANY CORPORATION REPORTS 2012 RESULTS:
STOCKHOLDERS’ EQUITY PER COMMON SHARE
INCREASES 10.8% SINCE 2011 YEAR-END
NEW YORK, NY, February 21, 2013 – Alleghany Corporation (NYSE-Y) reported stockholders’
equity per common share of $379.13 as of December 31, 2012, an increase of 10.8% from stockholders’
equity per common share of $342.12 at 2011 year-end.
Stockholders’ equity per common share as of December 31, 2012 reflects 8,360,959 shares issued
in connection with the merger between Alleghany and Transatlantic Holdings, Inc. (“TransRe”), which
closed on March 6, 2012. Alleghany’s results for 2012 include TransRe’s operations subsequent to the
closing date.
Results for the 2012 fourth quarter include an after-tax underwriting loss, net of reinsurance and
reinstatement premiums, of $267.8 million from Super Storm Sandy. In addition, fourth quarter after-tax
investment income was reduced by $8.6 million as a result of Sandy losses at Alleghany’s Homesite Group
Incorporated investment.
Our recorded loss for Sandy is based on an analysis of reported claims, an underwriting review of
in-force contracts, estimates of losses resulting from wind, flood and other perils, and other factors
requiring considerable judgment. Our ultimate loss from Sandy may be materially different from the
current estimate due to the broad size and complexity of the event and the preliminary nature of the
available information.
Results for the fourth quarter and full year include:
An increase in stockholders’ equity to approximately $6.4 billion as of December 31, 2012 from
approximately $2.9 billion as of December 31, 2011, primarily reflecting the merger and
Alleghany’s net earnings and unrealized investment gains in 2012.
Cash and invested assets as of December 31, 2012 of approximately $19.0 billion, compared with
$4.9 billion as of December 31, 2011.
A 2012 fourth quarter pre-tax loss, before merger-related items, of $147.4 million, compared with
pre-tax earnings of $74.0 million for the 2011 fourth quarter.
A 2012 fourth quarter net loss of $92.6 million or $5.47 per common share (presented on a basic
basis throughout), compared with net earnings of $37.7 million or $4.38 per common share, for the
2011 fourth quarter.
2012 pre-tax earnings, before merger-related items, of $511.5 million, compared with $213.5
million for 2011.
2012 net earnings of $702.2 million or $45.48 per common share, compared with $143.3 million or
$16.26 per common share for 2011. Net earnings for 2012 include merger-related items associated
with the purchase of TransRe, including a gain of $494.9 million resulting from the application of
purchase accounting treatment, amortization of intangible assets of $253.3 million and transaction
costs of $33.8 million.
2
A summary of Alleghany’s pre-tax results for the three months and years ended December 31, 2012
and 2011 follows:
Three Months ended
December 31,
Year ended
December 31,
(in millions) 2012 2011 Change 2012 2011 Change
Underwriting profit (loss):
Reinsurance ($102.4)
$ -
($102.4)
$266.7
$ -
$266.7
Insurance (119.6) 8.8 (128.4) (46.4) 49.5 (95.9)
(222.0) 8.8 (230.8) 220.3 49.5 170.8
Net investment income 78.4 26.7 51.7 313.0 108.9 204.1
Net realized capital gains 38.0 63.3 (25.3) 157.9 127.1 30.8
Other than temporary impairment losses - (0.9) 0.9 (2.9) (3.6) 0.7
Other income 13.9 0.3 13.6 57.3 1.8 55.5
Other operating expenses (25.8) (12.1) (13.7) (123.7) (31.1) (92.6)
Corporate administration (8.1) (7.7) (0.4) (42.0) (21.7) (20.3)
Interest expense (21.8) (4.4) (17.4) (68.4) (17.4) (51.0)
Net earnings before merger related items
and income taxes ($147.4)
$74.0
($221.4)
$ 511.5
$213.5
$298.0
Merger-related items:
Gain on bargain purchase - - - 494.9 - 494.9
Amortization of intangible assets* (39.9) (0.8) (39.1) (253.3) (3.4) (249.9)
Transaction costs - (19.3) 19.3 (33.8) (19.3) (14.5)
(39.9) (20.1) (19.8) 207.8 (22.7) 230.5
Earnings before income taxes ($187.3) $53.9 ($241.2) $719.3 $190.8 $528.5
_________________
* Include immaterial amounts of ongoing amortization arising from the acquisition of subsidiaries other than TransRe.
Weston M. Hicks, President and chief executive officer, commented:
“Alleghany grew its book value per share by 10.8% during 2012. This growth reflects the
favorable impact of the TransRe merger, which was highly accretive to our earnings and book value,
underwriting profits at TransRe and RSUI, and a total return of 5.4% on our investment portfolio. The
performance of TransRe and RSUI was solid given the significant losses from Super Storm Sandy, which
will be the second or third costliest U.S. natural catastrophe in history.
“Both RSUI and Capitol Transamerica found opportunities to grow their business during 2012 as
the property/casualty insurance market continued to gradually improve. RSUI’s gross premiums written for
the year increased by 13.9% with double-digit growth in both the property and casualty lines. RSUI’s
premium growth was due to good renewal retention rates, strong new business submissions and modest
price increases. Capitol’s net premiums written on its continuing business grew by 8.7% in 2012 as agents
responded positively to its service initiatives.
“Lastly, in October 2012, Alleghany’s Board of Directors authorized a $300 million share
repurchase program. Through year-end 2012, we repurchased 53,346 shares of our common stock for
$17.8 million under this program. In addition, during 2013 through February 13th, we have repurchased
another 86,876 shares for $30.5 million.”
3
2012 Fourth Quarter Underwriting Results
Alleghany’s underwriting loss for the 2012 fourth quarter was $222.0 million, compared with an $8.8
million profit in the fourth quarter of 2011, reflecting a $102.4 million underwriting loss for the reinsurance
segment (TransRe), and an underwriting loss of $119.6 million for the insurance segment, compared with a
modest underwriting profit in the 2011 fourth quarter. The underwriting loss was due to $412.0 million of
losses, net of reinsurance and reinstatement premiums, from Sandy, comprised of $250.8 million for
TransRe and $161.2 million for RSUI.
Total net premiums written for the quarter were $1,024 million, compared with $174 million for the
2011 fourth quarter. The insurance segment’s net written premium for the quarter increased by 18.1% to
$205 million from the 2011 fourth quarter.
Alleghany’s combined ratio for the quarter was 120.0%, compared with 95.4% in the 2011 fourth
quarter. TransRe’s combined ratio for the quarter was 111.4%, and the insurance segment’s combined ratio
was 156.5%, compared with 95.4% during the 2011 fourth quarter.
2012 Underwriting Results
Alleghany’s underwriting profit in 2012 was $220.3 million, compared with $49.5 million in 2011.
The increase reflects the contribution of $266.7 million of underwriting profit for TransRe since the merger
closed on March 6, 2012, partially offset by an underwriting loss of $46.4 million for the insurance
segment. TransRe’s underwriting profit during the period was due primarily to the favorable impact of
purchase accounting on TransRe’s expense ratio, partially offset by losses from Sandy. The insurance
segment’s underwriting loss for 2012 was due primarily to net adverse reserve development at Capitol
Transamerica and losses at Pacific Comp, with favorable underwriting results at RSUI largely offset by
losses from Sandy.
Total net premiums written for the year were $3,724 million, compared with $775 million for 2011.
The insurance segment’s net premium written increased by 14.0% during 2012 to $883.2 million.
Alleghany’s combined ratio for the year was 94.1%, compared with 93.4% during 2011. TransRe’s
combined ratio during 2012 was 90.9%, and the insurance segment’s combined ratio was 105.7%,
compared with 93.4% during 2011.
Investment Performance
Alleghany’s net investment income for the fourth quarter and full year 2012 was $78.4 million and
$313.0 million, respectively, an increase of 194% and 187% over the corresponding 2011 periods,
reflecting the addition of TransRe’s investment portfolio. The interest income earned on TransRe’s fixed
income portfolio is net of a significant increase to amortization expense resulting from the write-up of the
portfolio’s amortized cost basis to its fair value as of the date of the merger. This increased amortization
expense reduced TransRe’s reported net investment income, compared with TransRe’s net investment
income prior to the merger.
Alleghany’s investment portfolio, excluding other invested assets, was $17.8 billion as of
December 31, 2012. The total return on the investment portfolio, excluding other invested assets, for 2012
was 5.4%, including returns of 4.6% on the fixed income portfolio and 4.1% on the equity portfolio. The
equity portfolio return compares with a 16.0% total return for the S&P 500 for 2012. The total portfolio
return exceeds the fixed income and equity returns due to favorable asset allocation shifts.
4
Share Repurchases
In October 2012, Alleghany’s Board of Directors authorized the repurchase of shares of its
common stock, at such times and at prices as management determines advisable, up to an aggregate of
$300.0 million. Through year-end 2012, Alleghany repurchased an aggregate of 53,346 shares of its
common stock in the open market for $17.8 million, at an average price per share of $333.08, under the
authorization.
Additional Information
Additional information regarding Alleghany’s 2012 fourth quarter and full year results, including
management’s discussion and analysis of Alleghany’s financial condition and results of operations, is
contained in Alleghany’s Annual Report on Form 10-K for the year ended December 31, 2012, to be filed
with the U.S. Securities and Exchange Commission (the “SEC”) on or about the date hereof. The Form 10-
K will be available on Alleghany’s website at www.alleghany.com and on the SEC’s website at
www.sec.gov. Readers are urged to review the Form 10-K for a more complete discussion of Alleghany’s
financial performance.
About Alleghany Corporation
Alleghany Corporation (NYSE-Y) creates value through owning and managing operating
subsidiaries and investments, anchored by a core position in property and casualty reinsurance and
insurance. Alleghany’s property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading
global reinsurer; RSUI Group, Inc., a national underwriter of property and liability specialty insurance
coverages; Capitol Transamerica Corporation, an underwriter of small commercial property, casualty and
surety insurance coverages; and Pacific Compensation Corporation, an underwriter of workers’
compensation insurance primarily in California.
Non-GAAP Financial Measures
Throughout this press release, Alleghany’s results of operations have been presented in the way that
Alleghany believes will be the most meaningful and useful to investors, analysts, rating agencies and others
who use financial information in evaluating the performance of Alleghany. This presentation includes the
use of underwriting profit, which is a “non-GAAP financial measure,” as such term is defined in Regulation
G promulgated by the SEC. Underwriting profit represents net premiums earned less net loss and loss
adjustment expense and commissions, brokerage and other underwriting expenses, all as determined in
accordance with U.S. GAAP, and does not include net investment income, net realized capital gains, other
than temporary impairment losses, other income, other operating expenses, amortization of intangible assets
or interest expense. Alleghany consistently uses underwriting profit as a supplement to earnings before
income taxes, the most comparable U.S. GAAP financial measure, to evaluate the performance of its
segments and believes that underwriting profit provides useful additional information to investors because it
highlights net earnings attributable to a segment’s underwriting performance. Earnings before income taxes
may show a profit despite an underlying underwriting loss, and when underwriting losses persist over
extended periods, a reinsurance or insurance company’s ability to continue as an ongoing concern may be at
risk. However, underwriting profit is not meant to be considered in isolation or as a substitute for earnings
before income taxes or any other measures of operating performance prepared in accordance with U.S.
GAAP. A reconciliation of underwriting profit to earnings before income taxes is presented in the
schedules included herein.
# # #
5
Forward-looking Statements
This release contains disclosures which are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not
relate solely to historical or current facts, and can be identified by the use of words such as “may,” “will,”
“expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the
negative versions of those words or other comparable words. These forward-looking statements are based
upon Alleghany’s current plans or expectations and are subject to a number of uncertainties and risks that
could significantly affect current plans, anticipated actions and Alleghany’s future financial condition and
results. These statements are not guarantees of future performance, and Alleghany has no specific intention
to update these statements. The uncertainties and risks include, but are not limited to,
• significant weather-related or other natural or human-made catastrophes and disasters;
• the cyclical nature of the property and casualty reinsurance and insurance industries;
• changes in market prices of Alleghany’s significant equity investments and changes in value of its
debt securities portfolio;
• adverse loss development for events insured by Alleghany’s reinsurance and insurance operating
units in either the current year or prior years;
• the long-tail and potentially volatile nature of certain casualty lines of business written by
Alleghany’s reinsurance and insurance operating units;
• the cost and availability of reinsurance;
• exposure to terrorist acts and acts of war;
• the willingness and ability of Alleghany’s reinsurance and insurance operating units’ reinsurers to
pay reinsurance recoverables owed to its reinsurance and insurance operating units;
• changes in the ratings assigned to Alleghany’s reinsurance and insurance operating units;
• claims development and the process of estimating reserves;
• legal, political, judicial and regulatory changes, including the federal financial regulatory reform of
the insurance industry by the Dodd-Frank Wall Street Reform and Consumer Protection Act;
• the uncertain nature of damage theories and loss amounts;
• the reliance by Alleghany’s reinsurance operating units on a limited number of brokers;
• increases in the levels of risk retention by Alleghany’s reinsurance and insurance operating units;
• the loss of key personnel of Alleghany’s reinsurance and insurance operating units;
• fluctuation in foreign currency exchange rates;
• the failure to comply with the restrictive covenants contained in the agreements governing its
indebtedness;
• the ability to make payments on, or repay or refinance, its debt; and
• risks inherent in international operations.
6
Additional risks and uncertainties include general economic and political conditions, including the
effects of a prolonged U.S. or global economic downturn or recession; changes in costs; variations in
political, economic or other factors; risks relating to conducting operations in a competitive environment;
effects of acquisition and disposition activities, inflation rates, or recessionary or expansive trends; changes
in interest rates; extended labor disruptions, civil unrest, or other external factors over which Alleghany has
no control; and changes in Alleghany’s plans, strategies, objectives, expectations, or intentions, which may
happen at any time at its discretion. As a consequence, current plans, anticipated actions, and future
financial condition and results may differ from those expressed in any forward-looking statements made by
Alleghany or on its behalf.
For more information, please contact:
Jeff Majtyka/Mike Smargiassi
Brainerd Communicators, Inc.
212-986-6667
7
ALLEGHANY CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
2012 2011
Assets
Investments:
Available-for-sale securities at fair value:
Equity securities (cost: 2012 – $1,436,540; 2011 – $775,741) $1,424,014 $870,950
Debt securities (amortized cost: 2012 – $15,593,278; 2011 – $2,538,872) 15,999,538 2,679,528
Short-term investments 366,044 1,096,517
17,789,596 4,646,995
Other invested assets 537,350 179,815
Total investments 18,326,946 4,826,810
Cash 649,524 84,749
Accrued investment income 165,857 28,879
Premium balances receivable 585,195 147,006
Reinsurance recoverables 1,348,599 852,845
Ceded unearned premiums 154,980 142,946
Deferred acquisition costs 303,515 70,537
Property and equipment at cost, net of accumulated depreciation and amortization 34,118 17,906
Goodwill 83,447 48,095
Intangible assets, net of amortization 128,773 90,863
Current taxes receivable 79,933 0
Net deferred tax assets 532,569 80,975
Other assets 414,511 86,478Total assets $22,807,967 $6,478,089
Liabilities and Stockholders’ Equity
Loss and loss adjustment expenses $12,239,766 $2,313,035
Unearned premiums 1,705,342 549,740
Senior Notes 1,811,483 299,035
Reinsurance payable 67,654 45,462
Current taxes payable 0 16,247
Other liabilities 579,935 328,893
Total liabilities 16,404,180 3,552,412
Common stock (shares authorized: 2012 and 2011 – 22,000,000;
issued 2012 –17,478,746; 2011 – 9,117,787) 17,479 9,118
Contributed capital 3,619,912 938,037
Accumulated other comprehensive income 250,508 155,532
Treasury stock, at cost (2012 – 588,123 shares; 2011 – 566,141 shares) (175,818) (167,319)
Retained earnings 2,691,706 1,990,309
Total stockholders’ equity 6,403,787 2,925,677Total liabilities and stockholders’ equity $22,807,967 $6,478,089
(in thousands, except share amounts)
December 31,
8
ALLEGHANY CORPORATION AND SUBSIDIARIES Consolidated Income Statement Information
2012 2011
Revenues
Net premiums earned $3,733,005 $747,639
Net investment income 312,998 108,910
Net realized capital gains 157,879 127,141
Other than temporary impairment losses (2,907) (3,607)
Gain on bargain purchase 494,940 0
Other income 57,297 1,754
Total revenues 4,753,212 981,837
Costs and Expenses
Net loss and loss adjustment expenses 2,630,170 429,986
Commissions, brokerage and other underwriting expenses 882,502 268,125
Other operating expenses 123,700 31,101
Corporate administration 75,842 41,007
Amortization of intangible assets 253,298 3,355
Interest expense 68,424 17,426
Total costs and expenses 4,033,936 791,000
Earnings before income taxes 719,276 190,837
Income taxes 17,032 47,586
Net earnings $702,244 $143,251
(in thousands)
Years Ended December 31,
9
ALLEGHANY CORPORATION AND SUBSIDIARIES Consolidated Income Statement Information
2012 2011
Revenues
Net premiums earned $1,110,091 $192,572
Net investment income 78,430 26,736
Net realized capital gains 38,050 63,253
Other than temporary impairment losses 0 (851)
Gain on bargain purchase 0 0
Other income 13,863 300
Total revenues 1,240,434 282,010
Costs and Expenses
Net loss and loss adjustment expenses 1,042,355 114,568
Commissions, brokerage and other underwriting expenses 289,693 69,226
Other operating expenses 25,790 12,103
Corporate administration 8,151 26,977
Amortization of intangible assets 39,905 839
Interest expense 21,840 4,377
Total costs and expenses 1,427,734 228,090
Earnings before income taxes (187,300) 53,920
Income taxes (94,688) 16,249
Net earnings ($92,612) $37,671
(in thousands)
Three Months Ended December 31,
10
Alleghany Corporation and Subsidiaries
Cash and Investments
(in millions)
December 31, December 31,
2012 2011
Equity securities:
Common stock 1,424.0$ 871.0$ Preferred stock - -
Total equity securities 1,424.0 871.0
Debt securities:
U.S. Government obligations 522.9 267.8
Municipal bonds 6,304.1 1,113.6
Foreign government obligations 816.0 -
U.S. corporate bonds 3,515.7 354.1
Foreign corporate bonds 2,198.5 83.5
Mortgage and asset-backed securities:
Residential mortgage-backed securities 1,662.5 497.3
Commercial mortgage-backed securities 510.1 144.7 Other asset-backed securities 469.7 218.5
Total debt securities 15,999.5 2,679.5
Other invested assets:
Equity method investments 191.9 129.8
Partnership investments 311.9 23.6 Other 33.6 26.4
537.4 179.8
Short-term investments 366.0 1,096.5
Total investments 18,326.9 4,826.8
Cash 649.5 84.7
Total cash and investments 18,976.4$ 4,911.5$
11
Alleghany Corporation and Subsidiaries
Net Investment Income
(in millions)
For the Three Months Ended December 31,
2012 2011
Interest income 87.9$ 23.8$
Dividends 10.4 8.0
Equity in income (losses) of Homesite (16.4) (3.5)
Equity in income (losses) of ORX (0.3) 2.7
Other investment income (losses) 2.1 (2.3)
Total investment income 83.7 28.7
Investment expenses (5.3) (2.0)
Net investment income 78.4$ 26.7$
Net investment income - after tax* 70.8$ 23.8$
For the Year Ended December 31,
2012 2011
Interest income 306.1$ 100.0$
Dividends 24.9 37.8
Equity in income (losses) of Homesite (6.9) (20.2)
Equity in income (losses) of ORX (4.5) (0.7)
Other investment income (losses) 10.2 (1.2)
Total investment income 329.8 115.7
Investment expenses (16.8) (6.8)
Net investment income 313.0$ 108.9$
Net investment income - after tax* 271.1$ 90.0$
* Reflects income tax at a 35.0 percent statutory rate, except for tax-exempt interest income and dividends
subject to dividends-received deductions.
12
All
eg
ha
ny C
orp
ora
tio
n a
nd
Su
bsid
iarie
s
Prem
ium
s W
rit
ten
(in m
illio
ns)
Fo
r t
he T
hree M
on
ths E
nd
ed
Decem
ber 3
1,
Gro
ss P
rem
ium
s W
ritt
en
Net
Pre
miu
ms W
ritt
en
2012
2011
Cha
ng
e
% C
ha
ng
e2012
2011
Cha
ng
e
% C
ha
ng
e
Rein
sura
nce s
eg
ment:
Pro
pert
y305.4
$
-$
305.4
$
NM
288.3
$
-$
288.3
$
NM
Ca
sua
lty
and O
ther
537.9
-
537.9
NM
530.3
-
530.3
NM
843.3
-
843.3
NM
818.6
-
818.6
NM
Insura
nce s
eg
ment:
RS
UI
262.0
223.4
38.6
17.3
%163.3
138.7
24.6
17.7
%
CA
TA
37.3
35.4
1.9
5.4
%35.1
33.3
1.8
5.4
%
PC
C6.8
1.5
5.3
353.3
%6.6
1.6
5.0
312.5
%
306.1
260.3
45.8
17.6
%205.0
173.6
31.4
18.1
%
Inte
rco
mp
any e
limin
atio
n(5
.3)
-
(5.3
)
N
M-
-
-
T
ota
l1,1
44.1
$
260.3
$
883.8
$
NM
1,0
23.6
$
173.6
$
850.0
$
NM
Fo
r t
he Y
ea
r E
nd
ed
Decem
ber 3
1,
Gro
ss P
rem
ium
s W
ritt
en
Net
Pre
miu
ms W
ritt
en
2012
2011
Cha
ng
e
% C
ha
ng
e2012
2011
Cha
ng
e
% C
ha
ng
e
Rein
sura
nce s
eg
ment:
Pro
pert
y966.2
$
-$
966.2
$
NM
896.9
$
-$
896.9
$
NM
Ca
sua
lty
and O
ther
1,9
74.0
-
1,9
74.0
NM
1,9
43.8
-
1,9
43.8
N
M
2,9
40.2
-
2,9
40.2
NM
2,8
40.7
-
2,8
40.7
N
M
Insura
nce s
eg
ment:
RS
UI
1,1
23.4
986.5
136.9
13.9
%715.1
627.9
87.2
13.9
%
CA
TA
158.1
150.4
7.7
5.1
%149.1
141.6
7.5
5.3
%
PC
C19.4
4.1
15.3
373.2
%19.0
5.2
13.8
265.4
%
1,3
00.9
1,1
41.0
159.9
14.0
%883.2
774.7
108.5
14.0
%
Inte
rco
mp
any e
limin
atio
n(1
8.2
)
-
(18
.2)
N
M-
-
-
T
ota
l4,2
22.9
$
1,1
41.0
$
3,0
81.9
$
N
M3,7
23.9
$
774.7
$
2,9
49.2
$
N
M
13
All
eg
ha
ny C
orp
ora
tio
n a
nd
Su
bsi
dia
ries
Un
derw
riti
ng
Resu
lts
Fo
r th
e T
hre
e M
on
ths
En
ded
Decem
ber
31
, 2
01
2
(in m
illions)
Rein
sura
nce
Segm
ent
Insu
rance
Segm
ent
Casu
alt
y &
Tota
lC
orp
ora
te
Pro
pert
yO
ther
Tota
lR
SU
IC
AT
AP
CC
Tota
lS
egm
ents
Act
ivit
ies
Conso
lidate
d
Pre
miu
ms
wri
tten:
G
ross
305.4
$
537.9
$
843.3
$
262.0
$
37.3
$
6.8
$
306.1
$
1,1
49.4
$
(5
.3)
$
1,1
44.1
$
N
et
288.3
530.3
818.6
163.3
35.1
6.6
205.0
1,0
23.6
-
1,0
23.6
Net
pre
miu
ms
earn
ed
297.4
$
601.1
$
898.5
$
168.2
$
37.2
$
6.2
$
211.6
$
1,1
10.1
$
-
$
1,1
10.1
$
Net
loss
and L
AE
:
C
urr
ent
year
350.9
436.2
787.1
234.7
19.7
6.4
260.8
1,0
47.9
-
1,0
47.9
P
rior
years
-
-
-
(8.3
)
(0
.9)
3.7
(5.5
)
(5
.5)
-
(5.5
)
350.9
436.2
787.1
226.4
18.8
10.1
255.3
1,0
42.4
-
1,0
42.4
Com
mis
sions,
bro
kera
ge a
nd o
ther
underw
riti
ng e
xpense
s70.0
143.8
213.8
47.7
20.7
7.5
75.9
289.7
-
289.7
Underw
riti
ng p
rofi
t (l
oss
)(1
23.5
)$
21.1
$
(102.4
)$
(1
05.9
)$
(2.3
)$
(1
1.4
)$
(1
19.6
)$
(2
22.0
)
-
(222.0
)
Net
invest
ment
inco
me
91.4
(13.0
)
78.4
Net
realize
d c
apit
al gain
s36.7
1.3
38.0
OT
TI
loss
es
-
-
-
Gain
on b
arg
ain
purc
hase
-
-
-
Oth
er
inco
me
0.9
13.0
13.9
Oth
er
opera
ting e
xpense
s15.3
10.5
25.8
Corp
ora
te a
dm
inis
trati
on
-
8.1
8.1
Am
ort
izati
on o
f in
tangib
le a
ssets
39.9
-
39.9
Inte
rest
expense
12.4
9.4
21.8
Earn
ings
befo
re inco
me t
axes
(160.6
)$
(2
6.7
)$
(1
87.3
)$
Rati
os:
N
et
loss
and L
AE
118.0
%72.6
%87.6
%42.3
%53.6
%102.2
%120.6
%93.9
%0.0
%
C
urr
ent
year
118.0
%72.6
%87.6
%139.5
%53.0
%102.0
%123.2
%94.4
%
P
rior
years
0.0
%0.0
%0.0
%-4
.9%
-2.5
%59.7
%-2
.6%
-0.5
%
118.0
%72.6
%87.6
%134.6
%50.5
%161.7
%120.6
%93.9
%
E
xpense
23.5
%23.9
%23.8
%28.3
%55.5
%121.3
%35.9
%26.1
%
C
om
bin
ed
141.5
%96.5
%111.4
%162.9
%106.0
%283.0
%156.5
%120.0
%
14
All
eg
ha
ny C
orp
ora
tio
n a
nd
Su
bsi
dia
ries
Un
derw
riti
ng
Resu
lts
Fo
r th
e T
hre
e M
on
ths
En
ded
Decem
ber
31
, 2
01
1
(in m
illions)
Rein
sura
nce
Segm
ent
Insu
rance
Segm
ent
Casu
alt
y &
Tota
lC
orp
ora
te
Pro
pert
yO
ther
Tota
lR
SU
IC
AT
AP
CC
Tota
lS
egm
ents
Act
ivit
ies
Conso
lidate
d
Pre
miu
ms
wri
tten:
G
ross
-$
-$
-$
223.4
$
35.4
$
1.5
$
260.3
$
260.3
$
-$
260.3
$
N
et
-
-
-
138.7
33.3
1.6
173.6
173.6
-
173.6
Net
pre
miu
ms
earn
ed
-$
-$
-$
155.6
$
35.4
$
1.6
$
192.6
$
192.6
$
-$
192.6
$
Net
loss
and L
AE
:
C
urr
ent
year
-
-
-
91.5
18.1
1.3
110.9
110.9
-
110.9
P
rior
years
-
-
-
(12.6
)
4.5
11.8
3.7
3.7
-
3.7
-
-
-
78.9
22.6
13.1
114.6
114.6
-
114.6
Com
mis
sions,
bro
kera
ge a
nd o
ther
underw
riti
ng e
xpense
s-
-
-
44.5
18.5
6.2
69.2
69.2
-
69.2
Underw
riti
ng p
rofi
t (l
oss
)-
$
-$
-$
32.2
$
(5.7
)$
(1
7.7
)$
8.8
$
8.8
-
8.8
Net
invest
ment
inco
me
26.5
0.2
26.7
Net
realize
d c
apit
al gain
s16.3
47.0
63.3
OT
TI
loss
es
(0.9
)
-
(0.9
)
Gain
on b
arg
ain
purc
hase
-
-
-
Oth
er
inco
me
0.1
0.2
0.3
Oth
er
opera
ting e
xpense
s10.1
2.0
12.1
Corp
ora
te a
dm
inis
trati
on
-
27.0
27.0
Am
ort
izati
on o
f in
tangib
le a
ssets
0.8
-
0.8
Inte
rest
expense
-
4.4
4.4
Earn
ings
befo
re inco
me t
axes
39.9
$
14.0
$
53.9
$
Rati
os:
N
et
loss
and L
AE
C
urr
ent
year
58.8
%51.1
%81.2
%57.6
%57.6
%
P
rior
years
-8.1
%12.7
%762.9
%1.9
%1.9
%
50.7
%63.8
%844.1
%59.5
%59.5
%
E
xpense
28.6
%52.2
%404.7
%35.9
%35.9
%
C
om
bin
ed
79.3
%116.0
%1248.8
%95.4
%95.4
%
15
All
eg
ha
ny C
orp
ora
tio
n a
nd
Su
bsi
dia
ries
Un
derw
riti
ng
Resu
lts
Fo
r th
e Y
ea
r E
nd
ed
Decem
ber
31
, 2
01
2
(in m
illio
ns)
Rein
sura
nce
Seg
ment
Insu
rance
Seg
ment
Ca
sua
lty
&T
ota
lC
orp
ora
te
Pro
pert
yO
ther
To
tal
RS
UI
CA
TA
PC
CT
ota
lS
eg
ments
Act
ivit
ies
Co
nso
lida
ted
Pre
miu
ms
wri
tten:
Gro
ss966.2
$
1,9
74.0
$
2,9
40.2
$
1,1
23.4
$
158.1
$
19.4
$
1,3
00.9
$
4,2
41.1
$
(1
8.2
)$
4,2
22.9
$
Net
896.9
1,9
43.8
2,8
40.7
715.1
149.1
19.0
883.2
3,7
23.9
-
3,7
23.9
Net
pre
miu
ms
ea
rned
900.9
$
2,0
15.0
$
2,9
15.9
$
655.8
$
144.6
$
16.7
$
817.1
$
3,7
33.0
$
-
$
3,7
33.0
$
Net
loss
and L
AE
:
Curr
ent
yea
r566.4
1,4
91.7
2,0
58.1
497.3
72.7
14.5
584.5
2,6
42.6
-
2,6
42.6
Pri
or
yea
rs-
-
-
(31
.1)
13.2
5.6
(12
.3)
(1
2.3
)
-
(12
.3)
566.4
1,4
91.7
2,0
58.1
466.2
85.9
20.1
572.2
2,6
30.3
-
2,6
30.3
Co
mm
issi
ons,
bro
kera
ge a
nd o
ther
underw
riti
ng
ex
pense
s191.1
400.0
591.1
184.3
79.2
27.8
291.3
882.4
-
882.4
Underw
riti
ng
pro
fit
(lo
ss)
143.4
$
123.3
$
266.7
$
5.3
$
(20
.5)
$
(3
1.2
)$
(4
6.4
)$
220.3
-
220.3
Net
inv
est
ment
inco
me
317.5
(4.5
)
313.0
Net
rea
lize
d c
apit
al g
ain
s117.9
40.0
157.9
OT
TI
loss
es
(2.9
)
-
(2.9
)
Ga
in o
n b
arg
ain
purc
ha
se-
494.9
494.9
Oth
er
inco
me
26.1
31.2
57.3
Oth
er
opera
ting
ex
pense
s89.2
34.5
123.7
Co
rpo
rate
adm
inis
tra
tio
n-
75.8
75.8
Am
ort
iza
tio
n o
f in
tang
ible
ass
ets
253.3
-
253.3
Inte
rest
ex
pense
40.8
27.6
68.4
Ea
rnin
gs
befo
re inco
me t
ax
es
295.6
$
423.7
$
719.3
$
Ra
tio
s:
Net
loss
and L
AE
62.9
%74.0
%70.6
%42.3
%53.6
%102.2
%70.0
%70.5
%0.0
%
C
urr
ent
year
62.9
%74.0
%70.6
%75.8
%50.2
%86.8
%71.5
%70.8
%
P
rior
years
0.0
%0.0
%0.0
%-4
.7%
9.2
%33.2
%-1
.5%
-0.3
%
62.9
%74.0
%70.6
%71.1
%59.4
%120.0
%70.0
%70.5
%
E
xpense
21.2
%19.9
%20.3
%28.1
%54.8
%166.5
%35.7
%23.6
%
Co
mbin
ed
84.1
%93.9
%90.9
%99.2
%114.2
%286.5
%105.7
%94.1
%
16
All
egh
an
y C
orp
ora
tio
n a
nd
Su
bsi
dia
ries
Un
der
wri
tin
g R
esu
lts
Fo
r th
e Y
ear
En
ded
Dec
emb
er 3
1,
20
11
(in m
illio
ns)
Rein
sura
nce
Seg
ment
Insu
rance
Seg
ment
Ca
sua
lty
&T
ota
lC
orp
ora
te
Pro
pert
yO
ther
To
tal
RS
UI
CA
TA
PC
CT
ota
lS
eg
ments
Act
ivit
ies
Co
nso
lida
ted
Pre
miu
ms
wri
tten:
Gro
ss-
$
-$
-$
986.5
$
150.4
$
4.1
$
1,1
41.0
$
1,1
41.0
$
-
$
1,1
41.0
$
Net
-
-
-
627.9
141.6
5.2
774.7
774.7
-
774.7
Net
pre
miu
ms
ea
rned
-$
-$
-$
593.8
$
149.3
$
4.5
$
747.6
$
747.6
$
-$
747.6
$
Net
loss
and L
AE
:
Curr
ent
yea
r-
-
-
374.7
78.3
2.8
455.8
455.8
-
455.8
Pri
or
yea
rs-
-
-
(59
.5)
5.0
28.7
(25
.8)
(25
.8)
-
(2
5.8
)
-
-
-
315.2
83.3
31.5
430.0
430.0
-
430.0
Co
mm
issi
ons,
bro
kera
ge a
nd o
ther
underw
riti
ng
ex
pense
s-
-
-
170.8
72.7
24.6
268.1
268.1
-
268.1
Underw
riti
ng
pro
fit
(lo
ss)
-$
-$
-$
107.8
$
(6.7
)$
(5
1.6
)$
49.5
$
49.5
-
49.5
Net
inv
est
ment
inco
me
117.4
(8.5
)
108.9
Net
rea
lize
d c
apit
al g
ain
s79.7
47.4
127.1
OT
TI
loss
es
(3.6
)
-
(3
.6)
Ga
in o
n b
arg
ain
purc
ha
se-
-
-
Oth
er
inco
me
0.7
1.1
1.8
Oth
er
opera
ting
ex
pense
s26.2
4.9
31.1
Co
rpo
rate
adm
inis
tra
tio
n-
41.0
41.0
Am
ort
iza
tio
n o
f in
tang
ible
ass
ets
3.4
-
3.4
Inte
rest
ex
pense
0.1
17.3
17.4
Ea
rnin
gs
befo
re inco
me t
ax
es
214.0
$
(23
.2)
$
190.8
$
Ra
tio
s:
Net
loss
and L
AE
0.0
%0.0
%0.0
%
C
urr
ent
year
63.1
%52.4
%62.2
%61.0
%61.0
%
P
rior
years
-10
.0%
3.3
%638.8
%-3
.5%
-3.5
%
53.1
%55.7
%701.0
%57.5
%57.5
%
E
xpense
28.8
%48.7
%547.1
%35.9
%35.9
%
Co
mbin
ed
81.9
%104.4
%1248.1
%93.4
%93.4
%
